BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Linens 'n Things goes bye-bye]]>http://www.bloggingstocks.com/2008/10/15/linens-n-things-goes-bye-bye/http://www.bloggingstocks.com/2008/10/15/linens-n-things-goes-bye-bye/http://www.bloggingstocks.com/2008/10/15/linens-n-things-goes-bye-bye/#commentsFiled under:

In late 2005, Apollo Management Group agreed to pay $1.3 billion for Linens 'n Things, taking the company private. It proved to be horrible timing, as the housing market began its dramatic decline.

And the credit markets eventually crumbled, making the investment unworkable. In fact, the company had to file for bankruptcy in May.

Linens 'n Things tried to sell itself. Unfortunately, there were no bidders willing to take on the risks. So, this week the company will undergo a liquidation process.

No doubt, this is a big fall. Last year, Linens 'n Things posted revenues of $2.8 billion and had 589 stores across 47 states. There will also be a real impact on the employee base - which was 17,500 last year - as well as the 1,000 suppliers.

At the same time, expect some bargain-basement prices at local Linens 'n Things stores over the next few weeks.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market He is also the founder of BizEquity, a valuation website

Linens 'n Things goes bye-bye originally appeared on BloggingStocks on Wed, 15 Oct 2008 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Apollo Management GroupApolloManagementGroupinthenewsLinens n ThingsLinensNThingsWed, 15 Oct 2008 14:20:00 EST<![CDATA[Private equity's dirty linen]]>http://www.bloggingstocks.com/2007/05/15/private-equity-s-dirty-linen/http://www.bloggingstocks.com/2007/05/15/private-equity-s-dirty-linen/http://www.bloggingstocks.com/2007/05/15/private-equity-s-dirty-linen/#commentsFiled under:

Back in late 2005, Linens 'n Things decided to go private in a $1.3 billion deal. The private equity sponsor was Apollo Management.

The goal was to revamp the operations and ultimately get a big payday.

Well, things have not progressed so smoothly. Today, Linens 'n Things reported its Q1 results (the company still reports with the SEC because of its publicly traded bonds).

There was a net loss of $58.2 million, which compares to a net loss of $65.5 million in the same period a year ago. Revenues dipped 4% to $571.6 million.

What is particularly troubling is the same-store sales trend. That is, it was down 5.2%.

This is not to imply that the deal is imploding. Although, in light of the weak performance, it's probably going to take much more time for Apollo to get a return on this investment. And, it may be a warning for other firms thinking of doing retail deals.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Private equity's dirty linen originally appeared on BloggingStocks on Tue, 15 May 2007 18:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Apollo Management GroupApolloManagementGroupLinens 'n ThingsLinens'nThingsTue, 15 May 2007 18:15:00 EST